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The ACD Method
- Thread starter sbrowne126
- Start date
I'm swing/position trading right now, and have been having a lot of success lately taking positions at monthly A ups(selling) or downs(buying) when it also happens to be the 50 day SMA. Just thought I might share that as food for thought for the other longer term traders that might be lurking.
Has it ever been mentioned what the opening range time length is based on? I know the A/C levels are based on a percentage of the ATR of the OR, but I've never been clear on how he came up with 15, 30 or 45 minute range sizes - or why he starts the opening range well before the open on some products.
Quote from hidethereal:
Has it ever been mentioned what the opening range time length is based on? I know the A/C levels are based on a percentage of the ATR of the OR, but I've never been clear on how he came up with 15, 30 or 45 minute range sizes - or why he starts the opening range well before the open on some products.
It's personal preference. You want your OR to center around liquidity. That could be 7:30 am central time on econ data or even earlier. The length is dictated by how you trade, i.e. momentum, fader, scalper, etc. I would not want a 45 min OR if I was a breakout trader for example. Nor would I want to fade a move off a one min OR to use both extremes.
Quote from Maverick74:
It's personal preference. You want your OR to center around liquidity. That could be 7:30 am central time on econ data or even earlier. The length is dictated by how you trade, i.e. momentum, fader, scalper, etc. I would not want a 45 min OR if I was a breakout trader for example. Nor would I want to fade a move off a one min OR to use both extremes.
That makes sense, thank you. I have been using my own OR (and CR) time based on the volume of 5 min bars which means my range sizes and A/C levels change daily. A little different than his approach but it sounds like our reasoning is fairly well aligned.
I have a question about ACD Time Stops...
I know time stops are used to avoid getting whipsawed by HFTs. How far away would Mark Fischer put in his true stop/uncle point?
How would he determine this number?
I understand the importance of time stops and how it reduces the number of times that you will get faked out.
It would be great if you ACD veterans could talk about it. It seems like most of the ACD talk centers around when to get in a trade/entry points rather than how to manage stops.
I wont ask about profit taking since I hear Mark likes to let it ride. I saw in that webinar that he closed out his long Gold position based on what?? gut feeling?
I know time stops are used to avoid getting whipsawed by HFTs. How far away would Mark Fischer put in his true stop/uncle point?
How would he determine this number?
I understand the importance of time stops and how it reduces the number of times that you will get faked out.
It would be great if you ACD veterans could talk about it. It seems like most of the ACD talk centers around when to get in a trade/entry points rather than how to manage stops.
I wont ask about profit taking since I hear Mark likes to let it ride. I saw in that webinar that he closed out his long Gold position based on what?? gut feeling?
Quote from MoneyMatthew:
I have a question about ACD Time Stops...
I know time stops are used to avoid getting whipsawed by HFTs. How far away would Mark Fischer put in his true stop/uncle point?
How would he determine this number?
I understand the importance of time stops and how it reduces the number of times that you will get faked out.
It would be great if you ACD veterans could talk about it. It seems like most of the ACD talk centers around when to get in a trade/entry points rather than how to manage stops.
I wont ask about profit taking since I hear Mark likes to let it ride. I saw in that webinar that he closed out his long Gold position based on what?? gut feeling?
Fisher talks about this in one of his videos the link has been posted a few times. I think it is still up on Vimeo. The idea is that if
your long/short doesn't move in x time you get out. If you ever read the phantom of the pits it is discussed as well. You better position size small though yesterday you would have gotten killed on the long side with a time stop.
Maverick recently posted a few comments on the ISSE index. They have data on their website going back to 2002. The all securities value of 41 registered yesterday is the lowest reading in the entire data set. As I understand it, based on history, the low of this move may occur within a few days of today's low. Maverick, please correct me if I got this wrong...